Shares of Dixon Technologies jumped over 5 percent to hit their fresh all-time high of Rs 15,214.20 in morning trade on BSE on January 7, a day after the company said it had entered into an agreement with boAt for manufacturing of Twin wireless speakers.
“Dixon Technologies (India) Limited and boAt have entered into an agreement for manufacturing of Twin wireless speakers. Dixon shall be manufacturing the said products from its manufacturing facility located at Noida, Uttar Pradesh,” the company said in a statement on January 6.
“boAt is the leader in the earwear segment. Their high-quality audio devices are known for their style and efficiency. We are delighted and encouraged by the trust they have bestowed on Dixon for this collaboration. Dixon Group is committed to having a pivotal impact in making India an ‘Atmanirbhar Bharat’ backed by our commitment and performance,” said Atul B. Lall, Vice Chairman & Managing Director, Dixon Technologies.
The company claims to be a design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India.
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking, has a ‘hold’ call on Dixon Technologies.
“The stock has shown a gradual up-move and has continuously given positive returns in the last nine months. The corrective declines within this uptrend are getting arrested whenever the price approaches its ‘20 DEMA’ and the prices resume its uptrend from that support,” Jain said.
“Till this structure is intact, one should continue to hold the stock for further up-move. Since, it is in unchartered territory, following a trailing stop loss method would be the best method to ride this trend.”
“The support is currently placed around Rs 13,100 and thus existing positions should be held with a stop loss placed below this support level,” Jain added.
News Source: Moneycontrol